Some of Our Alumni

I see over-leveraging and pure greed as the root causes (of the“ current financial tsunami). But no regulator can prevent fraud; no amount of regulations can forestall greed. Good regulators will be able to spot problems earlier, nip them in the bud and take action to prevent them from spilling over and turning into a full scale crisis. ” Laura Cha

s a regulator, the SFC Laura Cha: Non-Official Member It was hard work being a pioneer. To Aencourages the exchange – the Executive Council of Hong prepare for SOE listings in Hong Kong, Kong; Deputy Chairman – the Laura spent more than 20 weekends in of information and ideas with Hongkong and Shanghai Banking industry participants. Over the one single year in Beijing to meet with Corp, Ltd Mainland officials. Internally, it was also years, numerous professionals Laura Cha has been forging new ground a challenge trying to “sell” the idea of have made their mark at the throughout most of her career, although, H shares to the SFC’s board of directors. SFC and then moved on to by her own account, she never really “The Mainland’s economy was just further their careers either planned it. getting off the ground and I was basically in the financial industry or the only one pushing the idea of listing some other sector. At least When head-hunted to join the SFC back Mainland companies. Thankfully I had one headed north to apply in 1991, she thought she would “give it a the support of Chairman Robert Owen try” as she could always return to legal and CFD Executive Director Ermanno their expertise in helping practice after the standard 30-month formulate the financial Pascutto,” she says. The Mainland had contract. Little did she realise that she no company law until July 1994 and the regulatory framework for would last a full 10 years and end up Securities Law came even later. She was China. No matter how far they being our deputy chairman. navigating in uncharted territories. have moved up the ladder in a diverse range of successful When she came to the SFC, she was one When approached by the Central careers, they all agree that of just two local staff among the top 20 Government to be a vice-chairman of the senior executives and the only woman. China Securities Regulatory Commission time spent at the SFC was But she soon found a niche – to help fulfilling and challenging. (CSRC) in 2001, she also had “no special develop a capital-raising framework in mission in mind”. She just wanted to Hong Kong for Mainland’s state-owned enhance some basic investor protection enterprises (SOEs), as part of Premier Zhu practices and raise the standard of Rongji’s economic reforms.

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corporate governance, the same things in Hong Kong. “It is frequently easier to opened up. I wanted to get more exposure she had been doing at the SFC. She implement reforms in the Mainland,” she on the policy side.” became the first person outside the says. “A lot of Hong Kong people under- Mainland to take up a vice-ministerial estimate our Mainland counterparts’ Almost from the start, she found her job position in the Central Government. commitment and efficiency.” at the SFC very meaningful in terms of its impact on the market, the intermediaries At the CSRC, it appeared to her that Barbara Shiu: Chief Risk Officer and the investing public. As Senior giving middle management some – BoC International Holdings Director of Intermediaries Supervision, international exposure would benefit the Ltd; Chairwoman – Hong Kong she spearheaded the SFC’s takeover of outlook of the organisation. She used her Securities Institute (HKSI) regulation of securities brokers from the salary, which by special permission of the Barbara Shiu’s career exemplifies what it stock exchange. The transfer needed to State Council, was the same as what she means to know what one wants and then happen in about half a year – by March earned at the SFC, to send a few CSRC to go for it. 2000 – as the securities exchange staff overseas every year for training as demutualised and merged with the futures well as academic studies. By the time she After working in the banking sector for exchange and clearing houses. On top of left the CSRC in 2004, more than 20 staff a number of years, Barbara knew that 100 plus futures brokers, the SFC now had had earned master degrees from overseas the policy side of the industry would be to oversee some 800 securities brokers. universities or participated in training at her next target. “In the private sector, overseas regulators. After she left the you choose your path according to the “Developing a system to handle the five- CSRC, she continued her educational objectives of the company,” she notes. fold increase in the number of regulatees mission by endowing two annual “But when you are a policy maker, you was a big challenge, but we did it on scholarships for Mainland students, one are looking at whether there are enough time and had the system up and running for a MBA degree at the Yale University paths for the market, whether they are School of Management and the other for good enough, whether they have become a LLM degree at the London School of obsolete, or whether more paths should be Economics. “I felt that educating more talent for the Mainland was in some Since the HKSI has ways more meaningful than having me been“ receiving considerable spend more years at the CSRC, as both support from market scholarships would go on indefinitely,” practitioners and is close she says. to the market, it is a good Laura is impressed by how Mainland bridge between the SFC regulators, especially the highly and some of the issues dedicated upper echelon, have been that practitioners are faced catching up with more advanced with especially concerning markets. She explains, for instance, that licensing and training. consultations for new rules and policies ” are all done electronically and are often Barbara Shiu completed faster on the Mainland than

Annual Report 2008-09 61 Some of Our Alumni

before the change (demutualisation) was specialising in corporate finance, Peter Going from the front line to overseeing the implemented,” she recalls. Au-Yang made a major decision to infrastructure of the SFC was not a major embrace change in his career. He has not challenge, given his prior management After the SFC, she had what she describes looked back and has been taking up new experience. And with 18 years of as the privilege of working at the CSRC. challenges ever since. experience behind him, it was not that “It was an experience that no money could difficult for him to take up the corporate buy,” she says. “I wouldn’t have this level Peter joined the SFC as an Executive finance post at the SFC either. “No matter of knowledge and understanding of the Director and its Chief Operating Officer in which post I was in, I was able to establish Mainland market had I not worked there.” May 2003. With that move, not only did he a good professional relationship with my cross from the private to the public sector direct subordinates and earn their trust,” As the new chairwoman of the HKSI, but he also changed from a line job to a Peter recalls. “We worked in harmony and Barbara now works closely with the SFC staff job. Some 18 months later, he also I saw no conflict between the two posts.” to maintain and raise industry standards. doubled up as the SFC’s Executive Director She has a lot of urgent tasks ahead of of Corporate Finance. On finishing his three-year contract her and hopes that, in the longer run, in 2006, Peter invested in a group of the efforts of the HKSI in improving the Moving from the private to the public companies which, among other things, capabilities of market practitioners will sector required some adjustment. At the introduce established US software into also benefit investors. same time, Peter wanted to bring his Mainland China. Once again, his corporate previous experience as an investment finance skills have proved invaluable in Peter Au-yang: Director banker to his role at the SFC. “A regulator deal structuring and negotiations with both – AsiaSoft Co, Ltd should know what’s happening in the US and Mainland partners. After 18 years with the HSBC Group industry,” he says.

Working at the SFC, a public body, I was reminded always“ that to advocate any policy – even if it’s most justifiable – one needs to convince the stakeholders and the public. It’s best to let them come to their own conclusions rather than impose something on them. One must listen to them. The importance of consultation – that was the biggest lesson I learned. ” Peter Au-yang

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Working for the SFC was the best career move“ I ever made (or anyone could make). It opened my eyes to many things, professionally and personally. It gave me an all-encompassing perspective on the capital markets and an appreciation for regulation. ” Angelina Kwan

Outside work, Peter is less conventional. Crisis management was Angelina’s “most keep track of industry developments. Motorcycling is a hobby he has picked memorable development” during a career “Communication is key to problem up since leaving the SFC and in less than of nearly eight years at the SFC. Every solving,” she explains. “I am a people three years, he has collected no fewer time a crisis struck, she was right there person. At the SFC, I would meet new than six motorcycles. From time to time, to set the contingency plan in motion. As people nearly every day on various issues however, he still prefers going down the a director in the Supervision of Markets and then work with different divisions to fast lane in his Ferraris. Division during SARS, she quickly deployed resolve their issues.” her skills in internal auditing, law and Since re-entering the private sector, Angelina Kwan: compliance to co-ordinate and implement Angelina has been putting her SFC Chief Operating Officer and an expanded “Business Contingency Plan” experience to good use, including, a macro Managing Director – Asia Pacific designed originally for the Millennium view of the market and contacts in both Region, Cantor Fitzgerald Bug. “To see the whole of the SFC work the Government and industry. She credits together as a team – that was very When a travel warning was put on Hong her SFC experience to fast-tracking her rewarding,” she recalls. Kong at the peak of the Severe Acute career. In three years at Cantor Fitzgerald, Respiratory Syndrome (SARS) pandemic in Angelina’s knack for networking came Angelina has moved from being Head of May 2003, it was just one more crisis for in handy at the SFC, where the regulator Legal and Compliance to Chief Operating Angelina Kwan to handle. needs a bridge to the markets to Officer for Asia Pacific and most recently, a managing director.

Annual Report 2008-09 63 Some of Our Alumni

As a manager, I learned to trust and empower. If you don’t“ let your staff make mistakes, they’ll never learn. Respect for others is also important. Even someone junior can come up with workable solutions that skip the mind of more experienced people. ” Kerry Ching

Kerry Ching: Managing Director preparatory work to launch the Mandatory But more than industry knowledge, Kerry – Hong Kong, Provident Fund (MPF), including numerous has been able to acquire three major sets FIL Investment Management discussions with the industry, helping of skills to apply in her development in (Hong Kong) Ltd draft the SFC Code on MPF Products, and the private sector. Armed with what she For career development, nothing beats the dividing work between the SFC and the calls “hard skills” (such as knowledge on timely matching of individual skills with yet-to-be-established Mandatory Provident products and regulations), “soft skills” the development of an industry and Kerry Fund Schemes Authority. (such as risk management, logical thinking) Ching can vouch for it. and networking skills, she has been “For the fund industry, the SFC is like the moving steadily up the corporate ladder Kerry returned to Hong Kong from Shao Lin Temple for kung fu masters,” since returning to the private sector. Toronto in 1995, determined to share her she says. “Many who left (the SFC) for knowledge acquired from Canadian mutual the private sector have brought their Although Kerry is passionate about work, fund houses with the then emerging local regulatory knowledge and skills to the she makes it a point to “have a life”. She fund industry. In 1998, as a manager in the industry,” she says. “We have a similar turns off her Blackberry while having lunch SFC’s Investment Products Department, mindset, so it is easier for us to get things with friends, has dinner at least once a Kerry was involved extensively in the achieved across the industry.” week with her mom, hits a few hard balls in a game of squash with friends, and also enjoys a little retail therapy.

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